FinCEN Not Issuing Fines or Penalties for Corporate Transparency Act Reporting Deadlines for US Entities
In the ongoing developments of the Corporate Transparency Act (“CTA”), the U.S. Department of the Treasury announced that it will not enforce penalties or fines for U.S. citizens, domestic reporting companies, or their beneficial owners under current regulatory guidelines. Enforcement of the mandatory filing requirements by March 21, 2025, for Georgia’s homeowners and condominium associations are suspended.
Additionally, FinCEN intends to issue an interim rule in March to narrow the scope of the CTA. The Treasury Department is expected to announce it intends to apply the Corporate Transparency Act reporting requirements to foreign reporting companies only.
What Does This Mean?
As of the date of this post:
- The Corporate Transparency Act reporting requirements will no longer be enforced against U.S. citizens or domestic reporting companies, including applicable community associations.
- No penalties or fines will be imposed on HOA and condominium officers and directors who have not yet filed their beneficial ownership reports.
- The Treasury Department is expected to release its formal rule change later this month, confirming that only foreign reporting companies must comply with the CTA.
- The suspension of enforcement is effective immediately and the March 21 reporting deadline previously announced will not be enforced.
For now, this relief is welcome for volunteer leaders of community associations. While NowackHoward fully supports efforts to prevent money laundering and terrorist financing, applying the CTA to community associations was an unintended and burdensome consequence of the legislation.
NowackHoward continues to closely monitor the pending litigation and legislation in Congress involving the Corporate Transparency Act. The Community Associations Institute also continues to closely track the various CTA litigation and legislation. Visit CAI’s Corporate Transparency Act webpage for ongoing updates and advocacy efforts and opportunities.
Should your Board of Directors still wish to voluntarily file your CTA report, you may do so directly with FinCEN through the BOI FinCEN Portal.
If your community association needs legal guidance on this or other matters, turn to NowackHoward. Our team of experienced HOA attorneys are dedicated to the practice of community association law and can help navigate any HOA legal issues. With a reputation as a top law firm in this field, we’ve earned recognition for our outstanding services. Trust us to help support your association.
